Red Bull Energy Drink Success Story The Current Energy Shot Category What is the Consumer Telling Us...

Red Bull Energy Drink Success Story

The Current Energy Shot Category

What is the Consumer Telling Us they Need?

How will Red Bull meet the Consumer Needs?

How will Red Bull Shots help you?

Activation Plan

AGENDA Agenda

Red Bull Energy Drink Success Story

The Current Energy Shot CategoryThe Current Energy Shot Category

What is the Consumer Telling Us they Need?What is the Consumer Telling Us they Need?

How will Red Bull meet the Consumer Needs?How will Red Bull meet the Consumer Needs?

How will Red Bull Shots help you?How will Red Bull Shots help you?

Activation PlanActivation Plan

AGENDA Agenda

RED BULL ENERGY DRINK SUCCESS STORY

Energy Category Created & Led By Red Bull Red Bull Created and Leads the Energy Category

*Source: D&M Trial & Awareness Study 2009

Red Bull is the original and Worlds leading energy drink.

Red Bull has the highest Top of Mind awareness of any energy brand in Australia – 98%*.

Red Bull has a strong consumer base built on consistent and heavy Brand support.

RED BULL ENERGY DRINK SUCCESS STORY

The ‘Secret’ To Our Success

One of the reasons for continued growth is the extraordinary marketing investments - consistently outspending all of our competitors.

Source: Media Edge Jan –Jun 09

RED BULL MARKETING PROGRAM

Heavy ATL – TV, Cinema, Radio Leverage Events/ Media Coverage

Red Bull Top Athletes Sampling and Cultural Marketing

Nudist

MASSIVE $25M IN BRAND INVESTMENT IN 2009

Christmas

Outback Pigeon

Red Bull Energy Drink Success StoryRed Bull Energy Drink Success Story

The Current Energy Shot Category





AGENDA Agenda

ENERGY SHOTS BACKGROUND

Energy shots are a rapidly emerging market in North America and Europe, generating in 2008:

188 million units

sales value of US$423m

Category growth +200% in 2008*

Key findings from the 2009 Zenith Energy Shot Drinks report include:

250ml/500ml energy drinks may contain too much volume for some consumers;

Shots opening up new consumption occasions for energy;

Appealing to new energy consumers;

Ready to expand into new markets.

Source: Nielsen Scantrack USA 11/08; Zenith International

Current Category Status

Category Outlook - Growth

Estimated to reach 500 million units and a retail value approaching $1.2bn by 2010.

Product theft already an issue

Proper execution and exploitation of the Leading Brand(s) will maximize the potential

THE CURRENT ENERGY SHOT CATEGORY

Source: Zenith International

Energy shots are driving new users to functional products… and do not extensively cannibalize existing business = huge opportunity!!!

MASSIVE INCREMENTAL OPPORTUNITY

*Source: IRI Energy Shot Attitudes and Usage Study 1/09

Current Category Status – Incremental Business

THE CURRENT ENERGY SHOT CATEGORY

Source: Aztec P&C Value 21/6/09

Performance of Current Energy Shots

National May 2009Dollars (000s) UPSW

Price ($/Unit)

Numeric Distribution

Uzi Energy Drink 30ml 23.2 8 3.87 8.4Raging Rex Nat Energy Shot 30ml 14.1 5 3.82 8.2Bad Boy Power Drink Shot 10ml 6.3 4 2.16 6Bad Boy Power Drink Shot 10ml 6.3 4 2.16 6Bad Girl Turbo Drink Shot 10ml 0 3 2.8 0

Low ROS and awareness and distribution of current energy shot offerings contributing to lower ROS

Great opportunity for Red Bull to bring trust and credibility to the emerging shot category



What is the Consumer Telling Us they Need?




AGENDA Agenda

CONSUMER RATIONALE: UNITED STATES

1) Need for a trusted brand:

5-Hour is an uncontested leader ...but…

“I don’t trust (energy shots) they feel cheap

and the packaging is sketchy.”*

2) Need for better taste:

Current shots on the market are not entirely satisfying …

“Ugh. It doesn't taste very good.”*

3) Need for ‘Image’ in the category in addition to rational usage:

Shots are associated with rational supplemental consumption …

“Energy drinks are more of a social drink for me….Its fun to drink.

Energy shots are about efficiency….one slug and I’m done.”*

*Source: Greenfield qualitative research energy shot users December 2008

Gaps in the Current Category Offer




How will Red Bull meet the Consumer Needs?



AGENDA Agenda

HOW WILL RED BULL MEET THE CONSUMER NEEDS?

Many potential consumers do not try the category due to the lack of a trusted and premium brand.

Top Brands drive the vast majority of sales and growth!

The original and premium Red Bull brand will establish and grow the Energy Shot Category by addressing the Consumer Need for brand trust.


“Red Bull has a good energy drink so they should have a good energy shot as well. The Brand Red Bull would make me interested in trying their

energy shot.”*

1) Need for a Trusted Brand with Clear Positioning

Red Bull Shots have the same taste profile as the Energy Drink.

Most current shots rank poorly on taste.

76% of energy shot consumers feel that energy shots taste bad*


#1 DISLIKE OF CURRENT ENERGY SHOTS: BAD TASTE*

*Source: IRI Energy Shot Attitudes and Usage Study 1/09; **Greenfield qualitative research energy shot users December 2008

“(Red Bull Energy Shot) didn’t taste like chemicals, very familiar”**

2) Need for Better Taste

Red Bull has the Brand Image to attract new younger consumers

37% Current Energy Shot consumer is between 45-54

19% is between 18-34

50% of Red Bull Energy Drink users are between 18-34

Over $25 million will be invested into the Red Bull Brand in 2009.


“Red Bull is the leader, they drive the cool little cars, they’re advertising and promoting all the time, there’s a trust.”*


3) Need for a Cool Image in the Category





How will Red Bull Shots help you?


AGENDA Agenda

RED BULL ENERGY SHOT - PRODUCT OVERVIEW

60 mL liquid, plastic bottle with screw top

Same taste as Red Bull Energy Drink

Same ingredients as Red Bull in other formats

Non-carbonated

No need for refrigeration – SNACK VENDING!!!

Low calories per serving

25 calories for Red Bull Energy Shot

Provides Sustained Energy For Hours…….

HOW WILL RED BULL SHOTS HELP YOU?

Convenient Functionality

Fits in a purse, pocket, glovebox,…

New Usage Occasions

Small, portable, resealable

Warm Consumption Opportunities

Option to buy now, drink later

Functionally-focused Product

Less liquid, no carbonation, fewer calories

General Consumer Benefits


New Impulse Purchases:

Attracts new and existing energy consumers

New Placement Opportunities:

Ability to range in snack vending machines as no refrigeration required

Each column in machines can range greater numbers of each product to its compact nature

Additional Profits:

Attractive margin, consistent rate of sale

*Source: HIM Research 2009

Vending Benefits


Red Bull will establish and build credibility for the Energy Shots category in Australia.

Red Bull Energy Shots combine the Top Energy Brand with a viable and growing category

Red Bull will drive penetration of Energy Shots by appealing to:

The Current Red Bull Energy Drink consumer who will buy a shot in addition to Red Bull Energy Drink;

The Current Shot Consumer who is looking for a trusted brand and better taste;

The New Shot Consumer who recognizes the Red Bull Brand.

“Red Bull brings the two things that are missing from the category…taste and trust.”*


Creating a Clear Target Consumer






Activation Plan

AGENDA Agenda

List Price (case): $52.80 (excl GST)

Net 20% Terms (per shot): $1.94 inc GST

RRP (vending): $4.00 inc GST

Margin: $2.17

% Margin: 52%

ACTIVATION PLAN

Pricing

Case ex GST Case GST Case inc GST net terms LUC inc GST Sell GP $ GP %250ml 42.00$ 46.20$ 36.96$ 1.54$ 3.40$ 1.86$ 55%E shot 52.80$ 58.08$ 46.46$ 1.94$ 4.00$ 2.06$ 52%

Size (Approx):

Bottle: 9.6cm (H) x 3.5cm (W)

12 Pack Unit: 9.9cm (H) x 14.7cm (W) x 10.9cm (D)

Case: 12.2cm (H) x 23.1cm (W) x 15.5cm (D)

Shipper:

12 bottles per self-merchandising unit (12 Pack)

2 x 12 pack units per case (24 units per case)

1 pallet = 350 cases (700 outers)

ACTIVATION PLAN

Detailed Product Specifications

ACTIVATION PLAN

Product Available:

W/c 1 September

Distribution in store – wc 15 September

Timings

ACTIVATION PLAN

Volume Forecast for National Vending Customers

Customer # of Snack Machines Distribution ROSQ4 2009

Volume - UnitsQ4 2009

Volume - Cases

8500 20% 10 221,000 9,208

3000 15% 8 46,800 1,950

2000 10% 8 20,800 867

13,500 2,350 288,600 12,025

Customer # of Snack Machines Distribution ROS2010

Volume - Units2010

Volume - Cases

8500 50% 10 2,210,000 92,083

3000 50% 8 624,000 26,000

2000 30% 8 249,600 10,400

13,500 6,350 3,083,600 128,483

Red Bull Energy Drink Success Story The Current Energy Shot Category What is the Consumer Telling Us...

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